CBO expects deficit to grow more than projected, warns that tariff hikes could harm growth
The U.S. budget deficit is expected to hit $960 billion in 2019, and average a whopping $1.2 trillion per year between 2020 and 2029, according to the CBO’s look-ahead at the U.S.′ budget and economic outlook over the next decade.
The new deficit projection for 2019 rose $63 billion from the last report, which came out in May. The CBO says this is mainly because of the massive new budget deal, which passed both houses of Congress and was signed into law by Trump on Aug. 2.
Bigger deficits and slower economic growth...this is what Trumpians consider WINNING!!!And while his trade war with China rages on, the CBO also says that the tariffs imposed under Trump since January 2018 are expected to make U.S. GDP roughly 0.3% smaller than it otherwise would have been.
“Trade policies” are weighing on economic activity, “particularly business investment,” the CBO said.